A market survey can theoretically establish that Dubai enjoys a significant demand for full ownership among Free Zone authorities. This demand is generated exclusively by those who have been harbouring their ambitions to invest in the gulf region. There’s no denying that tax exemptions and absolute ownership have always enticed foreign investors and international conglomerates. It is essential to mention that the UAE tallies a combined sixty dynamic Free Zones at present.
Free Zones- Overview
Before going any more profound on the subject, it is essential to understand the concept of Free Zones. These free zones provide exciting options for expatriates to establish their business in Dubai for an astute understanding. Moreover, Free Zones are always in high demand since they promise absolute foreign ownership with no corporate taxor personal tax.
Furthermore, it is essential to mention that almost all Free Zone locations across the UAE are widely acknowledged as unique geographical location. Additionally, all free zone practices their uniquely designed laws and regulations,respectively.
There’s no denying that picking the ideal free zone can effectively influence the success of a business in the gulf region. However, the country has more than sixty free zones, which can pose a specific challenge when determining the ideal free zone.
Here’s a detailed breakdown of the significant factors to consider when choosing a Free Zone for your business.
1- Business Activity
It is essential to mention that each free zone has its list of business activities, which you can exercise under the relevant free zone jurisdiction. Supposedly, free zones will allow business outfitsto operate their trade under the hood of their same trade license.
On the other hand, other free zones could restrict the enterprises to engage with only a few business activities. Your choice for a free zone will ultimately influence your requirement for multiple license types. Additionally, some free zones may prohibit the companies from engaging inspecific industries.
2- Infrastructural Requirements
Before selecting your company’s ideal free zone, it is crucial that you have a well-chalked out purpose and goals for your business. This is relevant since you will only operate under the free zone jurisdiction once you have established your Free zone business setup. Hence you must always have a detailed understanding of your target audience and their geographic background. If there is a probability that your customer base is within the mainland, then a free zone will fail to serve your cause.
Here’s a detailed breakdown of the other elements you must consider while picking your ideal free zone.
- Few free zones demand audited financial reports from companies every year.
- You must check if your business warrants a factory for producing goods.
- You must check if your business warrants port access to ports for business operations.
- You must check if your business warrants office space forclient interaction.
- You must check the free zones that allow companies to open a corporate bank account.
- You must check if you are paid-up capital warrants for opening a new company.
Before taking the final call on the free zone of choice, you mustevaluate both the location and existing infrastructure within the free zone itself. In all probability, you must only go for the free zone that ticks off all boxes for your customer and business operation needs. It would help if you always considered the merits and demerits of any given free zone as choosing the wrong option can be a detrimental affair for both your business and you in the long run.
3- UAE Resident Visa Requirement
It is essential to mention that the company set up Dubai will need to secure UAE residence visas if they want to employ a non-expat employee. As mentioned already, the visa criterion varies across all free zones, much like their respective jurisdictions. Hence please figure out your needs before settling on the free zone.
To put it simply, the visa criteria include the office facility type as it varies across free zone regulations. If you are a start-up firm, you could always secure multiple visas under an innovative desk or flex desk arrangement. However, this won’t be enough for major MNC’s that have many employees on their books.
It is notable to mention that the free zone visa regulation permits a single visa for an office space of ten square meters roughly. It would be best if you pursue larger offices to secure more visas. But having said that, larger office spaces can be way more costly when put in comparison with mainland UAE.
In conclusion, it is only crucial to mention that free zones are always running on high demands. Hence you must keep an eye on the market while finishing the company set up Dubai registration. If you fail to land upon a sizeable free zone office, you must settle for a significantly inferior alternative. This is opposite to the mainland UAE where you always have the flexibility to avail of office space on lease. Moreover, they don’t bite your pocket as much as the former, as most options have low rates.
As mentioned already at the beginning, free zones are constantly accepting numerous business domains. This means it could be particularly challenging to determine your ideal free zone set up. Hence please get a competent business consultant on board. They will provide the appropriate advice and business affirmation to help your cause.